Manila: Moody's Corp. has taken a strategic minority stake in Philippine Rating Services Corp. (PhilRatings), marking the first time a global credit rater has invested in a local Philippine rating firm. This move highlights the growing significance of the Philippine credit rating landscape in the global financial market.

According to Philippines News Agency, PhilRatings is the credit rating agency in the Philippines, supporting the development of the country's debt capital markets. The investment by Moody's expands its Asia-Pacific network of domestic rating agency affiliates. However, the specific terms of this transaction were not disclosed.

Moody's Ratings Managing Director and Regional Head of Asia Pacific, Wendy Cheong, emphasized the importance of strong domestic debt markets for sustainable economic growth. In a statement released on Tuesday, she noted that PhilRatings has developed deep insight into the local market, and its ratings complement Moody's global credit views for investors in the Philippines.

PhilRatings will continue to operate independently with its own management, governance, and credit rating processes. The collaboration is expected to enhance the credit market infrastructure in the Philippines, supported by Moody's global standards, best practices, and technical backing.

PhilRatings president, Angelica Viloria, expressed that Moody's role as a minority stakeholder reinforces their commitment to trust, credibility, and best-in-class credit ratings and research for the Philippine market.